{"id":581,"date":"2026-06-15T11:37:54","date_gmt":"2026-06-15T11:37:54","guid":{"rendered":"https:\/\/movingandmortgagehub.com\/?p=581"},"modified":"2026-06-15T11:37:54","modified_gmt":"2026-06-15T11:37:54","slug":"people-living-near-xais-dirty-data-centers-are-right-pissed-about-the-spacex-ipo","status":"publish","type":"post","link":"https:\/\/movingandmortgagehub.com\/?p=581","title":{"rendered":"People Living Near xAI\u2019s Dirty Data Centers Are Right Pissed About the SpaceX IPO"},"content":{"rendered":"
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\"Elon<\/figure>\n<\/div>\n

This story was originally published by<\/em>\u00a0WIRED\u00a0and is reproduced here as part of the\u00a0<\/em>Climate Desk\u00a0collaboration.<\/em><\/p>

Read more The Oligarchy Attends a Cage Fight<\/a><\/p>\n

SpaceX, Elon Musk\u2019s<\/strong>\u00a0behemoth company that\u00a0launches rockets\u00a0and runs\u00a0data centers, went public on Friday with a target valuation above $1.75 trillion. The move will make Musk, already the\u00a0richest man in the world, vastly wealthier.<\/p>\n

A public offering will allow SpaceX to\u00a0raise even more money\u00a0to\u00a0fund its AI ambitions, including building more data centers, faster.<\/p>\n

But even as Musk and other\u00a0SpaceX\u00a0investors see a huge windfall, the community hosting xAI data centers already in operation are demanding accountability from the company\u2019s use of polluting gas turbines and a water-treatment facility put on pause earlier this year.<\/p>\n

\u201cWe\u2019re the extracted and exploited colony of what is going to be one of the most highly valued entities in the world,\u201d says Justin Pearson, who represents portions of Memphis in the Tennessee House of Representatives. \u201cPeople are going to die because of this pollution.\u201d<\/p>\n

xAI is\u00a0selling $15 billion per year\u00a0in compute at its Memphis campuses to Anthropic, another company\u00a0planning a blockbuster IPO\u00a0in the coming months. \u201cPeople don\u2019t matter to SpaceX, or Anthropic, or whoever is building these data centers,\u201d Pearson says.<\/p>\n

President Donald Trump has suggested the US government could take a financial stake in frontier AI companies in order to begin \u201cgiving back\u201d to the American public. But it\u2019s unclear what form that would take\u2014or if such a move would even happen.<\/p>\n

SpaceX didn\u2019t respond to a request for comment and Anthropic declined to comment, though its head of public policy and Memphis\u2019 mayor have\u00a0touted the company\u2019s engagement\u00a0with the city.<\/p>\n

xAI\u2019s Colossus 1 campus in Memphis shot to national notoriety in 2024 when community members began sounding the alarm that the company was running natural gas turbines without permits. Regulators said that a loophole in the Clean Air Act allowed xAI to run\u00a0what appeared\u00a0to be as many as 35 turbines without a permit for a year. (Last year, local regulators\u00a0granted xAI a permit\u00a0to run 15 turbines on the site until 2027.)<\/p>\n

Natural gas turbines emit microscopic particles of fine particulate matter, dubbed PM2.5, which is linked to a\u00a0variety of health issues, including heart attacks, high blood pressure, and premature deaths in people with preexisting conditions. Experts\u00a0warn\u00a0that PM2.5 pollution can be harmful even below levels set by regulators.<\/p>\n

xAI\u2019s first data center was built in Boxtown, a historically Black neighborhood in Memphis that already has some of the\u00a0\u00a0from legacy industrial pollution.<\/p>\n

\u201cAll of us who have family in South Memphis, we know somebody who has died as a result of a bronchial ailment, or a random cancer that has no place in our family tree,\u201d says Richard Massey, a community organizer in Memphis.<\/p>\n

A group of environmental justice groups, led by the NAACP, filed a lawsuit earlier this year against xAI, alleging that the company installed gas turbines \u201cwithout an air permit or regard for the health and safety of people living nearby.\u201d Earlier this week, residents of Southaven filed a separate class-action lawsuit against xAI and SpaceX, claiming that construction on the data center was disturbing the community.<\/p>

Read more Trump Blocks Foreigners From Using Anthropic\u2019s Latest AI Tech<\/a><\/p>\n

The Environmental Protection Agency issued guidance in January that seemed to close the Clean Air Act loophole xAI was using to run its turbines without permits. However, the company had already begun setting up unpermitted turbines in Southaven, Mississippi, to power Colossus 2. As of mid-May, the company had brought in at least\u00a046 unpermitted gas turbines\u00a0to run on-site, according to emails xAI sent to regulators.<\/p>\n

xAI has brought significant tax revenue to the region. Officials have estimated that Shelby County could net up to $28 million in property taxes from xAI\u2019s Tennessee campus this year alone\u2014a big injection to the county budget, which\u00a0collected\u00a0just over $800 million in property taxes in 2024. Last year, the city council mandated that 25 percent of xAI\u2019s tax revenue be used to fund projects that enhance the neighborhoods where its data centers are located, including Boxtown.<\/p>\n

Residents have been debating a list of projects, including funding for home repair and an environmental dashboard, to use the $3 million collected in 2025. That\u2019s about .001 percent of the $250 billion that xAI was valued at when it was purchased by SpaceX in February in advance of the IPO.<\/p>\n

But the revenue from taxes, some residents say, pales in comparison to what\u2019s needed to offset the health impacts of the gas turbines in both Boxtown and Southaven. An\u00a0initial survey\u00a0released by two nonprofits earlier this week of air pollution collected from community-run air monitors at three sites throughout southwest Memphis shows that PM2.5 levels were consistently above EPA limits between November 2025 and March of this year. <\/p>\n

A separate\u00a0analysis\u00a0prepared as part of the NAACP lawsuit found that if the 41 turbines listed on xAI\u2019s permit application to power just the Colossus 2 campus ran continuously, they could possibly cause up to $44 million in health-related damage each year. (While xAI\u2019s Memphis campus does draw some power from the local power grid, it\u2019s not clear how often the company plans to run the gas turbines at either of its sites.)<\/p>\n

Community members are also concerned about xAI\u2019s water use. The Colossus 1 facility alone could\u00a0require\u00a0more than 5 million gallons a day to cool the computers at peak times. When xAI first came to Memphis, the company said that it would be building a water reuse facility to avoid impacting the aquifer.<\/p>\n

xAI broke ground on the site in October. But it abruptly stopped construction in mid-April, just a few months ahead of the IPO, leaving advocates in the dark about the future of the project. \u201cWe need to focus on finishing Colossus 2 and ensuring it is extremely stable, then will build the water recycling plant,\u201d Musk\u00a0said\u00a0in a tweet in early April.<\/p>\n

Earlier this week, Memphis city attorney Tannera Gibson told the City Council in a hearing that conversations with SpaceX about the site were \u201cpretty positive and pretty strong based on recent conversations.\u201d Lawmakers, including some who stated that they have had similar behind-the-scenes conversations with the company, pressed for more information to be made public.<\/p>\n

\u201cWe\u2019ve all gotten reassurances, but I want to hear those in public for everybody else,\u201d Memphis city council member Jerri Green\u00a0said\u00a0at the hearing.<\/p>\n

Despite the outcry from the public and the multiple lawsuits it faces, SpaceX has\u00a0continued adding unpermitted turbines\u00a0to its data center sites. The company\u2019s IPO revealed that it has\u00a0committed more than $2.8 billion to buy gas turbines in recent months; while it called water availability a risk factor\u00a0in its IPO filing documents, it made no mention of the construction of the water-treatment site. The Justice Department, meanwhile, indicated last month that it may\u00a0intervene\u00a0on behalf of xAI in the NAACP lawsuit.<\/p>\n

Massey says that Musk\u2019s track record of environmental conflicts at other sites he owns, from\u00a0California\u00a0to\u00a0Texas\u00a0to\u00a0Germany, means the Memphis community is skeptical of SpaceX, despite the economic benefits the tax revenue and potential water-treatment plant could bring.<\/p>\n

\u201cEverywhere [Musk] has gone, it\u2019s been the same result,\u201d he says. \u201cPeople suffer, especially in marginalized, low-income communities.\u201d<\/p>

Read more Want a Deal on a Heat Pump? Team up With Your Neighbors.<\/a><\/p>\n<\/article>","protected":false},"excerpt":{"rendered":"

Elon Musk\u2019s worth tops $1 trillion as rural communities fight to rein in his gas turbines.<\/p>\n","protected":false},"author":1,"featured_media":579,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nPeople Living Near xAI\u2019s Dirty Data Centers Are Right Pissed About the SpaceX IPO - Moving and Mortgage Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/movingandmortgagehub.com\/?p=581\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"People Living Near xAI\u2019s Dirty Data Centers Are Right Pissed About the SpaceX IPO - Moving and Mortgage Hub\" \/>\n<meta property=\"og:description\" content=\"Elon Musk\u2019s worth tops $1 trillion as rural communities fight to rein in his gas turbines.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/movingandmortgagehub.com\/?p=581\" \/>\n<meta property=\"og:site_name\" content=\"Moving and Mortgage Hub\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-15T11:37:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/movingandmortgagehub.com\/wp-content\/uploads\/2026\/06\/70f8cf7dc7f1c42158638ea4f58111d8-1024x575.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"575\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/#\\\/schema\\\/person\\\/6b7c79bcfd888d98f34c5413df7e81a2\"},\"headline\":\"People Living Near xAI\u2019s Dirty Data Centers Are Right Pissed About the SpaceX IPO\",\"datePublished\":\"2026-06-15T11:37:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581\"},\"wordCount\":1259,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/movingandmortgagehub.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/c7e3134554427469720c2d4e8face723.webp\",\"articleSection\":[\"Politics\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581\",\"url\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=581\",\"name\":\"People Living Near xAI\u2019s Dirty Data Centers Are Right Pissed About the SpaceX IPO - 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